UK eases payment restrictions to Lukoil's subsidiary in Austria

The UK's Office of Financial Sanctions Implementation has amended a licence allowing companies to continue doing business with Lukoil International GmbH, removing a restriction on frozen account payments.

Britain's sanctions ​office on Friday amended ​a temporary licence ‌allowing companies ​to continue doing business with a subsidiary of Russia's ‌Lukoil based in Austria, removing a restriction that required funds to be paid into frozen accounts. The Office of ‌Financial Sanctions Implementation said in a notice it ‌had removed that condition in the licence applying to Lukoil International GmbH and its subsidiaries. The notice did not say ⁠why ​the change ⁠had been made and the OFSI did not immediately respond ⁠to a request for comment.

UK companies can now ​process payments to Lukoil International accounts which are ⁠not frozen, but the OFSI said the change did not ⁠allow ​funds to then be returned to Lukoil, the Russian parent company. The licence, which took ⁠effect in November last year, remains subject to broader Russia ⁠sanctions ⁠rules and is due to expire on August 25, following an earlier extension.